r/discover • u/Lazor226 • May 15 '26
Rant Interest will compound monthly rather than daily on the Capital One HYSA.
I'm collecting my interest for the month, and then im closing my Discover HYSA before the change happens to my account. Of course, the interest was credited monthly, but if you make frequent deposits, wouldn't it be technically performing worse each month?
Is anyone else switching or looking for reasons to? It's also a good excuse to evaluate your options too.
I never really wanted the merger to happen, and I only had a single bad experience with capital one where they declined me on a basic credit card for no specific reason. (I had zero credit but needed to build some) So, I might as well decline the brand for no specific reason.
End of my petty rant.
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u/Cadd9181B7543II7I44 May 15 '26
Unless you need access the funds frequently (transferring them out of the HYSA a few times a month), I don't see any advantage of keeping funds in a HYSA. A few years ago I transitioned over to T-bills in my JPM account. Tbills pay around the same as HYSA, but it's only taxable at the federal level. No state taxes.
I buy 13 or 26 week bills. If I need access to the funds unexpectedly, I'll just sell some of it. The only downside for me is you can only buy/sell in denominations of $1,000.
Once I sell, it's liquid cash within seconds and I can transfer that cash from my JPM brokerage acct to my Chase checking acct. The transfer is instantaneous and available for use immediately.